LAS VEGAS (AP) — State Treasurer-elect Zach Conine has devised an alternate payment for marijuana outside of cash.
KLAS-TV reports both medical and recreational pot use are legal in Nevada. But because marijuana remains illegal under federal law, no marijuana business can use federally chartered banks.
Since marijuana is still illegal at a federal level, all transactions must be conducted in cash.
Since an all-cash business can lead to fraud, theft and even encourage robberies, Conine, Lieutenant Governor-elect Kate Marshall and others helped devise a solution.
Businesses and customers would be able to go to the state and exchange cash for tokens, otherwise known as chits. The chits would be powered by blockchain technology and would be fully trackable, to avoid money laundering.
Conine will get to work on this idea after he’s sworn in Jan. 7.